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Title: The Effect of Expected Income on Individual Migration Decisions
Resulting in 1 citation.
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Kennan, John Walker, James R. |
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The Effect of Expected Income on Individual Migration Decisions NBER Working Paper No. 9585, National Bureau of Economic Research, March 2003. Also: http://www.nber.org/papers/w9585 Cohort(s): NLSY79 Publisher: National Bureau of Economic Research (NBER) Keyword(s): High School Completion/Graduates; Male Sample; Migration; Wage Differentials The paper develops a tractable econometric model of optimal migration, focusing on expected income as the main economic influence on migration. The model improves on previous work in two respects: it covers optimal sequences of location decisions (rather than a single once-for-all choice), and it allows for many alternative location choices. The model is estimated using panel data from the NLSY on white males with a high school education. Our main conclusion is that interstate migration decisions are influenced to a substantial extent by income prospects. On the other hand we find no evidence of a response to geographic differences in wage distributions. Instead, the results suggest that the link between income and migration decisions is driven by a tendency to move in search of a better locational match when the income realization in the current location is unfavorable. |
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Bibliography Citation
Kennan, John and James R. Walker. "The Effect of Expected Income on Individual Migration Decisions." NBER Working Paper No. 9585, National Bureau of Economic Research, March 2003. |